Former President and Republican presidential candidate Donald Trump recently floated the idea of using bitcoin to pay down the country’s national debt. This move, some experts argued, could have wide-ranging implications for your wallet.
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“Who knows? Maybe we’ll pay off our $35 trillion, hand them a little crypto check, right? We’ll hand them a little bitcoin and wipe out our $35 trillion,” Trump, who started calling himself the “crypto president,” said in a Fox interview.
Many detractors were quick to respond. Economist Justin Wolfers said in an Aug. 3 post on X (formerly Twitter) that this is “not how debt works; it’s not how crypto works; and it’s not how economics works.”
Beyond the hypothetical feasibility of this plan, using bitcoin in that manner also could have some implications on your wallet.
Also, would Trump really be the “crypto president,” if elected?
Good for Your Wallet
Some experts noted to reach a total value of $35 trillion, the price of bitcoin would have to rise from the current (approximate) $60,000 to $2.1 million.
That said, they also argued that Trump is right about the importance of bitcoin.
“Making it easier to develop and run bitcoin and other cryptocurrency projects in the U.S. will be good for the economy and for ordinary citizens who will see new and better ways to manage their assets and their payments,” said Paul Mueller, senior research fellow at the American Institute for Economic Research.
Other experts also noted that using bitcoin to wipe off the national debt could be a very beneficial idea in the long run for consumers.
“Citizens would of course benefit from this in the long term because the overall national finances would be less strained, meaning that their pocketbooks would be less stressed,” said Markus Levin, co-founder of XYO Network.
Read More: Trump Wants To Eliminate Income Taxes — How Would That Impact You If You Are Retired?
It Hurts Crypto Prices
On the other hand, bitcoin and other cryptos plummeted following Trump’s remarks. As Newsweek reported, the price of bitcoin fell 12%, while the price of ethereum dropped 21% in the subsequent 24 hours….
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